Saudi Arabia’s SABIC Agri-Nutrients Signs Binding Agreement to Buy Stake in ETG Inputs Holdco

Posted on 01/24/2022


SABIC Agri-Nutrients Company (formerly Saudi Arabian Fertilizer Company “SAFCO”) is a petrochemical company in Saudi Arabia. SAFCO is one of the largest producers of urea in the world with an annual production capacity of over 2.6 million tons of urea while its ammonia annual production capacity is 2.3 million tons. Saudi Basic Industries Corporation (SABIC) owns 42.99% of SAFCO with 57.01% being held by the private sector and the public.

SAFCO signed a binding agreement to acquire 49% in the share capital of ETG Inputs Holdco Limited (Export Trading Group Inputs Holding Ltd.) for an enterprise value of US$ 320 million (1.2 billion Saudi riyals). The acquisition will be financed through own resources in addition to bank facilities, the fertilizer company said in a filing on the Tadawul bourse. ETG Inputs blends and distributes agri-nutrients products directly to the farmers and end users in several countries in Africa.

Mauritius-based ETG was established in 1967, is one of the largest and fastest growing integrated agricultural conglomerates in sub-Saharan Africa, importing and exporting soft commodities to and from 49 countries including Tanzania, Kenya, Malawi, Mozambique, Nigeria and South Africa. It also has supply chain operations in China, India, America, Middle East, and South East Asia; merchandising desks in Europe, and; treasury companies in Singapore, Mauritius and UAE. ETG is one of the largest players in agribusiness trading and processing in Africa.

ETG’s core business units are:
1. Agri Inputs (EIHL): ETG is one of the largest importers and distributors of fertilizers and farm inputs in Sub-Saharan Africa

2. ETG PSN: Pulses, Sesame and Nuts, ETG is the world largest trader and processor of Pulses as well as world largest trader for raw cashew nuts.

3. ETG Commodities: Grains & oilseeds, sugar, coffee, cocoa, maize and soybean are key products in this segment. ETG is one of the major players for maize and soybean in Sub-Saharan Africa

4. Consumer Branded (Vamara): ETG operates multiple processing plants across 14 countries to manufacture products that are targeted to African consumers. ETG has 22 brands in its portfolio that offers products from vegetable cooking oil, condiments, and spreads, etc.

5. ETG Logistics: ETG operates a very successful and integrated Logistics platform. ETG has a network of more than 400+ warehouses across 32 countries and a fleet of more than 900 trucks. ETG provided end-to-end Logistics services across sub-Sahara Africa.

6. Cashew & Cacao: The integration of Cocoanect in 2020 has allowed the group to build Cocoa volume, with sustainability being top priority. Korosho, the Group’s processed cashew nuts brand, is exported to markets across the world.

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